Salary vs Dividend Optimiser
Limited-company director sketches — salary, dividends, corporation tax, and personal tax.
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Personal take-home
56,804.40
Dividend available
52,476.46
Total tax + NI
23,195.60
Salary
12,570.00
Employer NI
1,135.50
Employee NI
0.00
Income tax on salary
0.00
Profit after salary
66,294.50
Corporation tax
13,818.04
Dividend tax
8,242.05
Kept share of profit
71.0%
CT band
Marginal relief
| Scenario | Employer NI | Corp tax | Dividend | Dividend tax | Take-home |
|---|---|---|---|---|---|
| No salary · £0 | 0.00 | 17,450.00 | 62,550.00 | 7,399.50 | 55,150.50 |
| Secondary threshold · £5,000 | 0.00 | 16,125.00 | 58,875.00 | 7,846.69 | 56,028.31 |
| Primary threshold / personal allowance · £12,570Best take-home | 1,135.50 | 13,818.04 | 52,476.46 | 8,242.05 | 56,804.40 |
| Personal tax band | Rate | Amount | Tax |
|---|---|---|---|
| Dividend allowance | 0% | 500.00 | 0.00 |
| Basic rate dividends | 8.75% | 37,200.00 | 3,255.00 |
| Higher rate dividends | 33.75% | 14,776.46 | 4,987.05 |
Indicative 2025/26 rates and thresholds. Assumes a single-director company with no employment allowance, a 12-month accounting period, no associated companies, and all post-tax profit paid as dividends. Dividends are taxed at UK-wide rates even for Scottish taxpayers. Indicative figures for planning only — confirm against HMRC rates before filing.